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Coherus BioSciences Reports First Quarter 2021 Financial Results and Immuno-oncology and Biosimilar Pipeline Progress
– Junshi Biosciences transaction is followed by rapid toripalimab progress including initiation of first BLA submission to the
–Toripalimab is one of four additional Coherus product candidates projected for approval in
the next two years –
– First quarter UDENYCA® net sales of
– Conference call today at
“Over the next two years, we project four additional Coherus product candidates will be approved in
“With significant new clinical data and the first
FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS
- GAAP net loss of
$173 millionfor the first quarter of 2021 was primarily driven by the $145 millionupfront payment to Junshi Biosciences for U.S.and Canadarights to the anti-PD-1 antibody toripalimab and one-time charges associated with the termination of the CHS-2020 biosimilar program as part of the strategic realignment of research and development resources toward immuno-oncology.
- Non-GAAP net income for the first quarter of 2021 was
$0.4 million, or $0.01per share.
- Cash flow from operations was
- Net product revenue, consisting of net sales of UDENYCA® (pegfilgrastim-cbqv) was
$83 millionfor the first quarter of 2021. With approximately 20% share of the overall pegfilgrastim market, UDENYCA maintains its position as the leading pegfilgrastim biosimilar.
- Coherus had cash, cash equivalents and marketable securities of
$400 millionat March 31, 2021.
April 2021, the Company received $50million from Junshi Biosciences’ acquisition of 2,491,988 shares of Coherus stock at a price per share of $20.06.
Toripalimab, a PD-1 blocking antibody product candidate, in collaboration with Junshi Biosciences:
- Junshi Biosciences initiated the rolling submission of the biologics license application (“BLA”) with the U.S. Food and Drug Administration (“FDA”) for toripalimab for the treatment of recurrent or metastatic nasopharyngeal carcinoma (“NPC”). The FDA has granted toripalimab Breakthrough Therapy Designation for this indication. The BLA submission is expected to be completed mid-year 2021, with potential approval in the first half of 2022.
- Results of JUPITER-02, a randomized, double-blind, placebo-controlled, multi-center, Phase 3 clinical trial evaluating toripalimab for first-line NPC, will be featured in the plenary session and in the official press program of the 2021 ASCO Annual Meeting in early June.
- In JUPITER-06, a randomized, double-blind, placebo-controlled, multi-center, Phase 3 clinical trial with 514 patients enrolled, toripalimab in combination with paclitaxel/cisplatin as first-line treatment for patients with advanced esophageal squamous cell carcinoma (“ESCC”) achieved the pre-specified primary endpoints of progression free survival (“PFS”) and overall survival (“OS”) at the interim analysis. Data from the study are expected later in 2021.
- Coherus and Junshi Biosciences plan to file additional toripalimab BLA supplements with the FDA over the next three years for multiple rare and highly prevalent tumor types, including non-small cell lung cancer (“NSCLC”). An ongoing Phase 3 clinical study of toripalimab in combination with standard chemotherapy as the first-line treatment of patients with advanced NSCLC reached its primary endpoint of PFS at the interim analysis in
December 2020. Top-line results are expected later in 2021.
CHS-201, a biosimilar Lucentis® (ranibizumab) product candidate in collaboration with
Bioeq AGexpects to file the CHS-201 BLA mid-year 2021, following a supportive pre-BLA meeting with the FDA earlier in the first quarter of 2021. Bioeq reviewed new manufacturing data with the FDA, which the agency requested last year, as well as other elements of the BLA filing.
CHS-1420, a wholly owned biosimilar Humira® (adalimumab) product candidate:
- The FDA accepted for review the BLA for CHS-1420 and assigned a target action date in
December 2021. The FDA has completed the on-site portion of the pre-approval drug substance CMC inspection, with no Form 483s being issued. Coherus plans to launch CHS-1420 on or after July 1, 2023, if approved.
CHS-305, a biosimilar Avastin® (bevacizumab) product candidate in collaboration with Innovent
- Coherus initiated the three-way pharmacokinetic study to facilitate the potential BLA submission. Recruitment into the study has been slower than expected as a result of the COVID-19 pandemic, and Coherus now expects data from this study around year end 2021.
Coherus is planning an analyst day event in the fourth quarter of 2021.
FIRST QUARTER 2021 FINANCIAL RESULTS
Net product revenue, consisting of net sales of UDENYCA®, was
Research and development (R&D) expenses for the first quarter of 2021 were
Selling, general and administrative (SG&A) expenses were
Net loss for the first quarter of 2021 was
Non-GAAP net income for the first quarter of 2021 was $0.4 million, or $0.01 per share on a diluted basis, compared to non-GAAP net income of $49.8 million, or $0.67 per share on a diluted basis for the same period in 2020. See “Non-GAAP Financial Measures” below for a discussion on how Coherus calculates non-GAAP net income and a reconciliation to the most directly comparable GAAP measures.
Cash, cash equivalents and investments in marketable securities were
2021 FINANCIAL OUTLOOK
Coherus expects UDENYCA® revenue and market penetration to rise in the second half of 2021, assuming the COVID-19 pandemic recedes and treatment patterns normalize, and subject to pricing trends in the overall pegfilgrastim market.
This financial guidance excludes the effects of any potential future strategic acquisitions, collaborations or investments, the exercise of rights or options related to collaboration programs, and any other transactions or items not yet identified or quantified. This guidance is subject to a number of risks and uncertainties. See Forward-Looking Statements described in the section below and the section titled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended
Conference Call Information
Dial-in: (800) 446-2782 (Toll-Free
Conference ID: 50149707
Please join the conference call at least 10 minutes early to register. The webcast will be archived on the Coherus website.
Coherus is a commercial stage biopharmaceutical company with the mission to increase access to cost-effective medicines that can have a major impact on patients’ lives and to deliver significant savings to the health care system.
Coherus’ strategy is to build a leading immuno-oncology franchise funded with cash generated by its commercial biosimilar business. Coherus markets UDENYCA® (pegfilgrastim-cbqv) in the United States and through 2023 expects to launch toripalimab, an anti-PD-1 antibody, as well as biosimilars of Lucentis®, Humira®, and Avastin®, if approved.
For additional information, please visit www.coherus.com.
UDENYCA® is a trademark of Coherus BioSciences, Inc.
Avastin® and Lucentis® are registered trademarks of Genentech, Inc.
Humira® is a registered trademark of AbbVie Inc.
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Coherus’ ability to maintain UDENYCA® market share and position as leading pegfilgrastim biosimilar in
|Condensed Consolidated Statements of Operations|
|(in thousands, except share and per share data)|
|Three Months Ended|
|Net product revenue||$||83,034||$||116,180|
|Cost of goods sold||7,511||6,855|
|Research and development||203,492||33,107|
|Selling, general and administrative||39,391||35,350|
|Total operating expenses||250,394||75,312|
|(Loss) Income from operations||(167,360||)||40,868|
|Other income, net||61||68|
|Net (loss) income before income taxes||(172,947||)||36,505|
|Income tax provision||—||933|
|Net (loss) income||$||(172,947||)||$||35,572|
|Net (loss) income per share:|
|Weighted-average number of shares used in computing net (loss) income per share:|
|Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||259,489||$||541,158|
|Investments in marketable securities||140,014||-|
|Trade receivables, net||140,410||157,046|
|Liabilities and Stockholders’ Equity|
|Accrued rebates, fees and reserve||$||78,202||$||81,529|
|Convertible notes due 2022*||80,240||79,885|
|Convertible notes due 2022 - related parties*||26,747||26,628|
|Convertible notes due 2026||223,341||223,029|
|Total stockholders' equity||127,671||280,974|
|Total liabilities and stockholders’ equity||$||693,303||$||841,649|
|* The Convertible notes due 2022 and the Convertible notes due 2022 - related parties were classified in current liabilities as of
|Condensed Consolidated Cash Flow|
|Three Months Ended|
|Cash, cash equivalents and restricted cash at beginning of the period||$||541,598||$||177,908|
|Net cash provided by operating activities||$||1,367||$||13,477|
|Purchases of investments in marketable securities||(140,330||)||—|
|Upfront license fee payment to Junshi Biosciences||(145,000||)||—|
|Purchases of property and equipment and other investing activities||(145||)||(1,616||)|
|Net cash used in investing activities||$||(285,475||)||$||(1,616||)|
|Proceeds from issuance of common stock upon exercise of stock options||4,329||4,803|
|Taxes paid related to net share settlement of RSUs||(1,730||)||(880||)|
|Other immaterial financing activities||(160||)||—|
|Net cash provided by financing activities||$||2,439||$||3,923|
|Net (decrease) increase in cash, cash equivalents and restricted cash||$||(281,669||)||$||15,784|
|Cash, cash equivalents and restricted cash at end of the period||$||259,929||$||193,692|
|Reconciliation of cash, cash equivalents, and restricted cash|
|Cash and cash equivalents||$||259,489||$||193,252|
|Restricted cash – non-current||440||440|
|Cash, cash equivalents and restricted cash||$||259,929||$||193,692|
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with GAAP, Coherus has also included in this press release non-GAAP net income, and the related per share measures, which exclude from net income, and the related per share measures, stock-based compensation expense, upfront and milestone payments under the license agreements, costs related to termination of a research and development program as part of a strategic realignment of research and development resources toward other development programs and the related income tax effect of those non-GAAP adjustments. These non-GAAP financial measures are not prepared in accordance with GAAP, do not serve as an alternative to GAAP and may be calculated differently than similar non-GAAP financial information disclosed by other companies. Coherus encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP financial information and the reconciliation between these presentations set forth below, to more fully understand Coherus’ business.
Coherus believes that the presentation of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. In particular, Coherus believes that these non-GAAP financial measures, when considered together with its financial information prepared in accordance with GAAP, can enhance investors’ and analysts’ ability to meaningfully compare Coherus’ results from period to period, and to identify operating trends in Coherus’ business. Coherus also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions.
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income
(in thousands, except share and per share data)
|Three Months Ended|
|GAAP net (loss) income||$||(172,947||)||$||35,572|
|Stock based compensation expense||16,884||9,555|
|Upfront license fees expense||145,000||5,000|
|Costs related to termination of CHS-2020 development program||11,503||—|
|Income tax effect of the above adjustments||(24||)||(362||)|
|Non-GAAP net income||$||416||$||49,765|
|GAAP net (loss) income per share, basic||$||(2.37||)||$||0.50|
|GAAP net (loss) income per share, diluted||$||(2.37||)||$||0.48|
|Non-GAAP net income per share, basic||$||0.01||$||0.70|
|Non-GAAP net income per share, diluted||$||0.01||$||0.67|
Chief Financial Officer
+1 (650) 395-0152
Source: Coherus BioSciences, Inc.